[Senate Report 113-294]
[From the U.S. Government Publishing Office]
Calendar No. 634
113th Congress } { Report
SENATE
2d Session } { 113-294
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MARINE AND HYDROKINETIC RENEWABLE ENERGY ACT
_______
December 10, 2014.--Ordered to be printed
_______
Ms. Landrieu, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1419]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1419) to promote research, development,
and demonstration of marine and hydrokinetic renewable energy
technologies, and for other purposes, having considered the
same, reports favorably thereon with an amendment and
recommends that the bill, as amended, do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Marine and
Hydrokinetic Renewable Energy Act of 2014''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--MARINE AND HYDROKINETIC RENEWABLE ENERGY TECHNOLOGIES
Sec. 101. Definition of marine and hydrokinetic renewable energy.
Sec. 102. Marine and hydrokinetic renewable energy research and
development.
Sec. 103. National Marine Renewable Energy Research, Development, and
Demonstration Centers.
Sec. 104. Authorization of appropriations.
TITLE II--MARINE AND HYDROKINETIC RENEWABLE ENERGY REGULATORY
EFFICIENCY
Sec. 201. Marine and hydrokinetic renewable energy projects and
facilities.
TITLE I--MARINE AND HYDROKINETIC RENEWABLE ENERGY TECHNOLOGIES
SEC. 101. DEFINITION OF MARINE AND HYDROKINETIC RENEWABLE ENERGY.
Section 632 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17211) is amended in the matter preceding paragraph (1) by
striking ``electrical''.
SEC. 102. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH AND
DEVELOPMENT.
Section 633 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17212) is amended to read as follows:
``SEC. 633. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH AND
DEVELOPMENT.
``The Secretary, in consultation with the Secretary of the Interior,
the Secretary of Commerce, and the Federal Energy Regulatory
Commission, shall carry out a program of research, development,
demonstration, and commercial application to accelerate the
introduction of marine and hydrokinetic renewable energy production
into the United States energy supply, giving priority to fostering
accelerated research, development, and commercialization of technology,
including programs--
``(1) to assist technology development to improve the
components, processes, and systems used for power generation
from marine and hydrokinetic renewable energy resources;
``(2) to establish critical testing infrastructure
necessary--
``(A) to cost effectively and efficiently test and
prove marine and hydrokinetic renewable energy devices;
and
``(B) to accelerate the technological readiness and
commercialization of those devices;
``(3) to support efforts to increase the efficiency of energy
conversion, lower the cost, increase the use, improve the
reliability, and demonstrate the applicability of marine and
hydrokinetic renewable energy technologies by participating in
demonstration projects;
``(4) to investigate variability issues and the efficient and
reliable integration of marine and hydrokinetic renewable
energy with the utility grid;
``(5) to identify and study critical short- and long-term
needs to create a sustainable marine and hydrokinetic renewable
energy supply chain based in the United States;
``(6) to increase the reliability and survivability of marine
and hydrokinetic renewable energy technologies;
``(7) to verify the performance, reliability,
maintainability, and cost of new marine and hydrokinetic
renewable energy device designs and system components in an
operating environment;
``(8) to coordinate and avoid duplication of activities
across programs of the Department and other applicable Federal
agencies, including National Laboratories and to coordinate
public-private collaboration in all programs under this
section;
``(9) to identify opportunities for joint research and
development programs and development of economies of scale
between--
``(A) marine and hydrokinetic renewable energy
technologies; and
``(B) other renewable energy and fossil energy
programs, offshore oil and gas production activities,
and activities of the Department of Defense; and
``(10) to support in-water technology development with
international partners using existing cooperative procedures
(including memoranda of understanding)--
``(A) to allow cooperative funding and other support
of value to be exchanged and leveraged; and
``(B) to encourage the participation of international
research centers and companies within the United States
and the participation of United States research centers
and companies in international projects.''.
SEC. 103. NATIONAL MARINE RENEWABLE ENERGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION CENTERS.
Section 634 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17213) is amended by striking subsection (b) and inserting the
following:
``(b) Purposes.--A Center (in coordination with the Department and
National Laboratories) shall--
``(1) advance research, development, demonstration, and
commercial application of marine and hydrokinetic renewable
energy technologies;
``(2) support in-water testing and demonstration of marine
and hydrokinetic renewable energy technologies, including
facilities capable of testing--
``(A) marine and hydrokinetic renewable energy
systems of various technology readiness levels and
scales;
``(B) a variety of technologies in multiple test
berths at a single location; and
``(C) arrays of technology devices; and
``(3) serve as information clearinghouses for the marine and
hydrokinetic renewable energy industry by collecting and
disseminating information on best practices in all areas
relating to developing and managing marine and hydrokinetic
renewable energy resources and energy systems.''.
SEC. 104. AUTHORIZATION OF APPROPRIATIONS.
Section 636 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17215) is amended by striking ``2008 through 2012'' and
inserting ``2015 through 2018''.
TITLE II--MARINE AND HYDROKINETIC RENEWABLE ENERGY REGULATORY
EFFICIENCY
SEC. 201. MARINE AND HYDROKINETIC RENEWABLE ENERGY PROJECTS AND
FACILITIES.
Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is amended by
adding at the end the following:
``SEC. 34. PILOT LICENSE FOR MARINE AND HYDROKINETIC RENEWABLE ENERGY
PROJECTS.
``(a) Definition of Hydrokinetic Pilot Project.--
``(1) In general.--In this section, the term `hydrokinetic
pilot project' means a facility that generates energy from--
``(A) waves, tides, or currents in an ocean, estuary,
or tidal area; or
``(B) free-flowing water in a river, lake, or stream.
``(2) Exclusions.--The term `hydrokinetic pilot project' does
not include a project that uses a dam or other impoundment for
electric power purposes.
``(b) Pilot Licenses Authorized.--The Commission may issue a pilot
license to construct, operate, and maintain a hydrokinetic pilot
project that meets the criteria listed in subsection (c).
``(c) License Criteria.--The Commission may issue a pilot license for
a hydrokinetic pilot project if the project--
``(1) will have an installed capacity of not more than 10
megawatts;
``(2) is for a term of not more than 10 years;
``(3) will not cause a significant adverse environmental
impact or interfere with navigation;
``(4) is removable and can shut down on reasonable notice in
the event of a significant adverse safety, navigation, or
environmental impact;
``(5) can be removed, and the site can be restored, by the
end of the license term, unless the project has obtained a new
license or the Commission has determined, based on substantial
evidence, that the project should not be removed because it
would be preferable for environmental or other reasons not to;
and
``(6) is primarily for the purpose of--
``(A) testing new hydrokinetic technologies, both
single devices and in arrays of devices;
``(B) locating appropriate sites for new hydrokinetic
technologies; or
``(C) determining the environmental and other effects
of a hydrokinetic technology.
``(d) Lead Agency.--In carrying out this section, the Commission
shall act as the lead agency--
``(1) to coordinate all applicable Federal authorizations;
and
``(2) to comply with the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.).
``(e) Schedule Goals.--
``(1) In general.--Not later than 30 days after the date on
which the Commission receives a completed application, and
following consultation with Federal, State, and local agencies
with jurisdiction over the hydrokinetic pilot project, the
Commission shall develop and issue pilot license approval
process scheduling goals that cover all Federal, State, and
local permits required by law.
``(2) Compliance.--Applicable Federal, State, and local
agencies shall comply with the goals established under
paragraph (1) to the maximum extent practicable, consistent
with applicable law.
``(3) 1-year goal.--It shall be the goal of the Commission
and the other applicable agencies to complete the pilot license
process by not later than 1 year after the date on which the
Commission receives the completed application.
``(f) Size Limitation.--For proposed projects located in an estuary,
tidal area, river, lake, or stream, the Commission shall determine the
size limit on a case-by-case basis, taking into account all relevant
factors.
``(g) Extensions Authorized.--On application by a project, the
Commission may make a 1-time extension of a pilot license for a term
not to exceed 5 years.''.
Purpose
The purpose of S. 1419 is to promote research, development,
and demonstration of marine and hydrokinetic renewable energy
technologies.
Background and Need
Marine hydrokinetic renewable energy (MHK) is a form of
hydropower that generates energy from free-flowing waters, such
as waves, currents, an estuary, or a tidal area, as well as
from the free-flowing water in a river, lake, or stream. MHK
differs from conventional hydropower in that it generates
energy without the use of a dam or other impoundment.
The United States has not been a world leader in the
development of cutting edge MHK technologies to date. Instead,
the United States, with its significant wave, tidal, current,
and in-stream energy resource potential serves as a potential
market for its international competitors in this new industrial
sector. The Electric Power Research Institute has estimated
that the commercially available wave energy potential off the
coast of the United States is roughly 252 million megawatt
hours--equal to 6.5 percent of today's entire generating
portfolio. This is approximately the amount of electricity
presently being produced by the existing domestic fleet of
conventional hydroelectric dams.
MHK has potential to generate a substantial amount of clean
renewable energy in the United States and across the globe. It
is poised to be a key participant in the transition to a low
carbon economy and has the potential to be part of an ``all of
the above'' energy strategy. However, to date there has been no
successful commercial development of MHK in the United States
due to technological and regulatory cost barriers.
S. 1419 is intended to help commercialize MHK technologies
through research and development and put in place a more
efficient and timely regulatory process for the siting of pilot
projects intended to demonstrate the viability of these
technologies.
Legislative History
S. 1419 was introduced by Senator Wyden on August 1, 2013.
Senators Murkowski, King, Merkley, and Schatz are cosponsors.
The Subcommittee on Water and Power held a hearing on S.
1419 on February 27, 2014 (S. Hrg. 113-284). The Committee
adopted an amendment in the nature of a substitute and ordered
S. 1419, as amended, reported favorably on November 13, 2014.
Committee Recommendation
The Senate Committee on Energy and Natural Resources, in
open business session on November 13, 2014, by a voice vote of
a quorum present, recommends that the Senate pass S. 1419, if
amended as described herein. Senator Barrasso asked to be
recorded as voting no.
Committee Amendment
During its consideration of S. 1419, the Committee adopted
an amendment in the nature of a substitute containing technical
changes to the bill.
Section-by-Section Analysis
Section 1 contains the Act's short title, the ``Marine and
Hydrokinetic Renewable Energy Act of 2014,'' and sets forth the
bill's table of contents.
Section 101 amends the definition of marine and
hydrokinetic (MHK) renewable energy in section 632 of the
Energy Security and Independence Act of 2007 to include all
forms of energy, not solely electricity.
Section 102 amends section 633 of the Energy Security and
Independence Act of 2007 to authorize the Secretary of Energy,
in consultation with the Secretary of the Interior, the
Secretary of Commerce, and the Federal Energy Regulatory
Commission (FERC) to carry out a program of MHK research,
development, demonstration and commercial application to
accelerate the introduction of MHK energy production to the
U.S. energy supply.
Section 103 amends section 634 of the Energy Security and
Independence Act of 2007 to provide that any National Marine
Renewable Energy Research, Development, and Demonstration
Center (Center) shall advance research and development,
demonstration, and commercial application of a wide range of
MHK renewable energy technologies types and scales through in-
water testing and other means. It adds a new section 634(b)(3)
to require centers Center to also serve as information
clearinghouses for the MHK industry.
Section 104 amends section 636 of the Energy Security and
Independence Act of 2007 to authorize funding of up to $50
million per year for fiscal years 2015 through 2018 for the
Department of Energy's MHK research and development program.
Section 201 adds a new section 34 to part 1 of the Federal
Power Act. Subsection (b) of the new section 34 authorizes FERC
to issue a pilot license to construct operate and maintain an
MHK pilot project that has a capacity of no more than 10 MW.
Subsection (c) establishes licensing criteria for MHK projects.
The criteria provide for a term of not more than 10 years (with
a possible one-time extension of up to five years) and require
that the project will not cause a significant adverse
environmental impact or interfere with navigation, be removable
and be capable of shutting down on reasonable notice; and be
primarily for the purpose of testing, locating appropriate
sites, or determining the technology's environmental effects.
Subsection (d) provides that the FERC will be the lead agency
for the purposes of compliance with the National Environmental
Policy Act. Subsection (e) establishes the scheduling goal that
the FERC and other regulatory agencies complete the pilot
license process by not later than one-year after receipt of a
complete application.
Cost and Budgetary Considerations
The following estimate of costs of this measure has been
provided by the Congressional Budget Office.
S. 1419--Marine and Hydrokinetic Renewable Energy Act of 2014
Summary: S. 1419 would authorize appropriations for
activities aimed at promoting the development of marine and
hydrokinetic energy devices that produce energy from moving
water. The bill also would authorize the Federal Energy
Regulatory Commission (FERC) to issue licenses for pilot
projects to test new hydrokinetic technologies.
Assuming appropriation of the authorized amounts, CBO
estimates that implementing S. 1419 would cost $192 million
over the 2015 2019 period. Pay-as-you-go procedures do not
apply to this legislation because it would not affect direct
spending or revenues.
S. 1419 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary effect of S. 1419 is shown in the following table.
The costs of this legislation fall within budget function 270
(energy).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------
2015
2015 2016 2017 2018 2019 2019
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CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level....................................... 50 50 50 50 0 200
Estimated Outlays......................................... 12 30 50 50 50 192
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Basis of estimate: S. 1419 would authorize the
appropriation of $50 million a year over the 2015 2018 period
for the Department of Energy (DOE) to promote research,
development, and commercial application of marine and
hydrokinetic energy devices. In 2014, DOE received $41 million
for activities aimed and promoting such technologies. Based on
historical spending patterns for such activities, CBO estimates
that implementing S. 1419 would cost $192 million over the 2015
2019 period, assuming appropriation of the authorized amounts.
CBO estimates that authorizing FERC to issue licenses for
pilot projects to test marine and hydrokinetic technologies
would have no significant net impact on the federal budget. CBO
anticipates that issuing such licenses would affect FERC's
workload; however, because FERC recovers 100 percent of its
costs through user fees, any change in that agency's costs
(which are controlled through annual appropriation acts) would
be offset by an equal change in fees that the commission
charges, resulting in no net change in federal spending.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: S. 1419
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Estimate prepared by: Federal costs: Megan Carroll; Impact
on state, local, and tribal governments: Jon Sperl; Impact on
the private sector: Amy Petz.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 1419.
The bill is not a regulatory measure in the sense of
imposing Government-established standards or significant
economic responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 1419, as ordered reported.
Congressionally Directed Spending
S. 1419, as reported, does not contain any congressionally
directed spending items, limited tax benefits, or limited
tariff benefits as defined in rule XLIV of the Standing Rules
of the Senate.
Executive Communications
The testimony provided by Mike Carr, Senior Advisor to the
Director, Energy Policy and Systems Analysis and Principal
Deputy Assistant Secretary, Office of Energy Efficiency and
Renewable Energy, Department of Energy, and John Katz, Deputy
Associate General Counsel for Energy Projects, Federal Energy
Regulatory Commission, at the February 27, 2014, Subcommittee
on Water and Power hearing on S. 1419 follows:
Written Statement of Mike Carr, Senior Advisor to the Director, Energy
Policy and Systems Analysis and Principal Deputy Assistant Secretary,
Office of Energy Efficiency and Renewable Energy, Department of Energy
introduction
Chairman Schatz, Ranking Member Lee, and members of the
Subcommittee, thank you for the opportunity to testify on
behalf of the U.S. Department of Energy (DOE) on S. 1419, the
Marine and Hydrokinetic Renewable Energy Act of 2013.
The Department is still reviewing S. 1419 and therefore
does not have a position on the bill at this time. S. 1419
would authorize the Department to perform research and
development on marine and hydrokinetic (MHK) technology
components, materials, and systems in order to improve
performance, increase survivability, and drive down the
technology's cost. S. 1419 would authorize the Department to
develop appropriate testing infrastructure and support
demonstrations of MHK energy technologies to verify their
performance and cost. The legislation also would expand the
authorized role of National Marine Renewable Energy Research,
Development, and Demonstration Centers to include in-water
testing and demonstration of MHK technologies.
background
DOE is pursuing an all-of-the-above approach to developing
every source of American energy. The Office of Energy
Efficiency and Renewable Energy leads DOE's efforts to help
build a strong clean energy economy, a strategy that is aimed
at reducing our reliance on oil, saving families and businesses
money, creating jobs, and reducing pollution. We support
research, development, and demonstration (RD&D) of cutting-edge
technologies in sustainable transportation, energy efficiency,
and renewable electricity generation, including both hydropower
and MHK technologies. The Department supports the goals of
ensuring United States leadership in innovating, validating,
and manufacturing MHK technologies domestically, as well as
deploying these technologies sustainably in order to harness
the energy potential of our various water resources while
building a clean energy economy.
The Water Power Program has recently completed
comprehensive resource assessments that identify the potential
of the nation's waves, as well as tidal, ocean, and river
currents. These resource assessments estimate that the
technically extractable resource potential is almost 900 TWh/yr
for wave energy\1\ and under 400 TWh/yr for tidal\2\ and ocean
current,\3\ which represents up to 25 percent of projected U.S.
generation needs by 2050. With more than 50 percent of the
population living within 50 miles of coastlines, there is
significant potential to provide clean, renewable electricity
to communities and cities in these coastal regions using marine
and hydrokinetic technologies. MHK technologies can more
readily compete in the near term in coastal regions with higher
average electricity prices, and close proximity of coastal
populations to water resources reduces transmission distances.
There are potentially many different ways that we can
sustainably develop our water resources for energy and the
Department is committed to helping identify new opportunities
for developing renewable energy resources.
---------------------------------------------------------------------------
\1\Reprocessed at 100 meter depth data from P. Jacobson, G.
Hagerman, and G. Scott, ``Mapping and Assessment of the United States
Ocean Wave Energy Resource,'' Electric Power Research Institute, Report
Number 1024637, 2011.
\2\K. Haas, H. Fritz, S. French, B. Smith, and V. Neary,
``Assessment of Energy Production Potential from Tidal Streams in the
United States,'' Georgia Tech Research Corporation, 2011 Upper bound
derives from variation on assumptions in numerical models used.
\3\K. Haas, H. Fritz, S. French, and V. Neary, ``Assessment of
Energy Production Potential from Ocean Currents Along the United States
Coastlines,'' Georgia Tech Research Corporation, 2013 Upper bound
derives from variation on assumptions in the numerical models used, and
represents Gulistream from FL to NC.
---------------------------------------------------------------------------
Since DOE restarted its Water Power Program in fiscal year
2008, the Program has made significant strides in advancing
next-generation water power technologies that can extract
energy from moving water, including waves and currents in
oceans, rivers, and tidal areas; assessing existing resources;
promoting deployment opportunities; and developing this
resource in an environmentally responsible manner.
Fostering a domestic MHK industry requires strategic
investments in research, development, testing, and
demonstration to drive down the cost and improve the
performance of the most promising and cost-competitive
technologies. The Department plans to invest $41.3 million in
fiscal year 2014 to promote MHK technology development and
testing in laboratory and open-water settings, while gathering
the operational, environmental, and cost data needed to
accelerate the responsible deployment and commercialization of
MHK technologies.
Furthermore, like all energy development, MHK deployment
requires ensuring that our water, ecological, and marine life
resources are protected. I will address these broad areas in
turn.
research and development
The levelized cost of energy (LCOE) of today's wave energy
devices is between 61 and 77 cents per kilowatt-hour (0/kWh),
and is between 47 and 53 0/kWh for tidal stream energy
devices.\4\ The MHK subprogram goal is to achieve cost-
competitiveness at local coastal hurdle rates, which is
approximately 12 to 15 0/kWh by 2030. The Program has developed
detailed cost models for six different MHK device designs using
performance simulations and small-scale laboratory tests for
validation. To build on these cost models and clearly identify
cost reduction pathways, the Program is identifying research
and development opportunities to reduce the LCOE for MHK
devices, supporting a detailed, internal techno-economic
assessment of MHK technologies and helping stakeholders
identify research and development gaps to achieve cost-
competitive energy rates by 2030. Using data from internal
techno-economic MHK assessment, the Department has established
baseline costs for the technology to better inform MHK RD&D
activities.
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\4\``The Carbon Trust, Accelerating Marine Energy,'' July 2011:
http:\\www/carbontrust.com/resources/reports/technology/accelerating-
marine-energy.
---------------------------------------------------------------------------
Research activities enable the development of innovative
technologies and improve the reliability and technology
readiness of MHK systems. DOE currently supports systems and
performance advancement projects to develop new drivetrain,
generator and structural components as well as develop software
that predicts ocean conditions and adjusts device settings
accordingly to optimize power production. One example includes
innovative components with cross-platform applicability, such
as simplified drivetrain designs that will eliminate costly and
unreliable gearboxes and hydraulics by utilizing permanent
magnet and linear direct-drive generators. DOE also researches
ways to improve the technology's survivability, like innovative
corrosion resistant materials, such as composites, which can
lower repairs and reduce operations and maintenance costs.
testing and demonstration
DOE has invested in three National Marine Renewable Energy
Centers. These Centers are geographically diverse, offering
testing sites for a wide range of MHK technology types in
different water conditions and climates, to help validate
technology performance and identify and address technology
deficiencies early in the development cycle. Recently, the
Northwest National Marine Renewable Energy Center, led jointly
by Oregon State University and the University of Washington,
launched the Ocean Sentinel, a mobile instrumentation buoy to
support ocean testing that obtains critical technical and cost
performance data for a variety of wave energy technologies.
Additionally, the Water Power Program is focused on making
strategic investments in transformative technologies, including
systems demonstration for advanced MHK industry projects like
wave energy converter technologies. By supporting in-water
demonstrations, the Program will have the opportunity to
evaluate the entire process from demonstration inception to
completion, validating construction, generation, and operating
expenses and informing the investor community on the status and
progress of MHK systems. Between fiscal year 2011 and fiscal
year 2013, the Program cost-shared the testing of 10 MHK
devices in open-water environments, and the testing of 8 MHK
devices in test tanks in controlled conditions. These
demonstrations have greatly increased our knowledge and
understanding of device performance and their interaction with
the environment. This important demonstration work helps to
advance the commercial readiness of full-scale MHK
technologies, like the first-ever grid-connected tidal power
device in the United States in Cobscook Bay, Maine, now
delivering enough electricity to the utility grid to alone
power 25 to 30 homes annually.
developing mhk resources sustainably
EERE's MHK subprogram pursues market acceleration and
deployment activities that address key environmental and
ecological uncertainties, which DOE believes currently
represent the most significant barrier to rapid and efficient
permitting and licensing of new demonstrations or commercial
projects. In fiscal year 2014, DOE plans to invest $5 million
in activities that support a range of environmental studies and
tool development to ensure that energy generated from MHK is
not only renewable, but environmentally sustainable. This
includes the development of instrumentation, associated
processing tools, and integration of instrumentation packages
for quickly and cost-effectively conducting environmental
monitoring of MHK technologies. Additionally, DOE is an active
member of the International Energy Agency's Ocean Energy
Systems group and recently collaborated with international
partners to create the Tethys database, which catalogues and
shares environmental research and monitoring information from
around the world to enable sustainable development and
expansion of clean, renewable ocean and offshore wind power.
For the past four years, DOE has also served as the convener of
the Federal Renewable Ocean Energy Working Group to discuss
issues of importance, including environmental considerations,
amongst relevant federal agencies.
conclusion
In conclusion, I would like to thank you for the
opportunity to testify on S. 1419 and on DOE's work to advance
MHK technologies. The Department's goals are to help build a
viable domestic MHK industry and secure a supply of efficient
clean energy from our water resources by supporting innovations
enabling cutting-edge MHK technology, testing and demonstration
of these technologies, and tools and analysis to ensure we
develop our marine and hydrokinetic resources sustainably. I
look forward to working with this Subcommittee and with
Congress to ensure United States leadership in this industry
and to enable the deployment of this source of clean energy.
Testimony of John Katz,
Deputy Associate General Counsel,
Federal Energy Regulatory Commission
Chairman Schatz, Ranking Member Lee, and Members of the
Subcommittee:
My name is John Katz, Deputy Associate General Counsel for
Energy Projects, Federal Energy Regulatory Commission. I
appreciate the opportunity to appear before you to discuss S.
1419, the Marine and Hydrokinetic Renewable Energy Act. As a
member of the Commission's staff, the views I express in this
testimony are my own, and not necessarily those of the Chairman
or of any individual Commissioner.
i. background
Pursuant to Part I of the Federal Power Act (FPA), the
Federal Energy Regulatory Commission authorizes and regulates
non-federal hydropower projects. FPA section 4(e) provides that
the Commission may issue licenses for hydropower project works
located across, along, from, or in any of the streams over
which Congress has jurisdiction under its commerce clause
authority, and on any part of the public lands and reservations
of the United States. FPA section 23(b) makes it unlawful (with
exceptions not relevant here) for any person, state, or
municipality, for the purpose of developing electric power, to
construct hydropower project works on the navigable waters of
the United States, on non-navigable waters over which Congress
has Commerce Clause jurisdiction, on public lands or
reservations, or using surplus water or power from any
government dam, except pursuant to a license issued by the
Commission.
Under the FPA, the Commission regulates over 1,600
hydropower projects at over 2,500 dams. Together, these
projects represent 54 gigawatts of hydropower capacity, more
than halt' of all the hydropower in the United-States.
Hydropower is an essential part of the Nation's energy mix and
offers the benefits of an emission-free, renewable, domestic
energy source with public and private capacity together
totaling about nine percent of the U.S. electric generation
capacity.
During the last decade, there has been increasing interest
in developing projects using new technology that produces
electricity utilizing waves or the flow of water in ocean
currents, tides, or inland waterways. These are referred to as
marine and hydrokinetic projects. By early 2007, the Commission
had received more than 50 applications for preliminary permits
to study such projects, and had held a technical conference
with respect to the development of these new technologies. The
Commission then issued an interim policy statement with respect
to its review of marine and hydrokinetic preliminary permit
applications.
In 2008, Commission staff issued guidance on licensing
marine and hydrokinetic pilot projects. The guidance discussed
the issuance, under the Commission's existing authority and
regulations, of five-year pilot licenses to enable developers
to study and test new technology. Pilot project licenses would
be for projects that were small, short-term, not located in
environmentally sensitive areas, would be able to be shut down
on short notice, and would be removed at the end of the pilot
license term, unless a new license was granted at that time.
Applicants would be required to consult with affected federal,
state, and local resource agencies, Indian tribes, non-
govemmental agencies, and members of the public.
Since the issuance of the Commission policy statement and
staff guidance, Commission staff has worked closely with
project developers and other stakeholders to explore the
development of marine and hydrokinetic projects. There are
currently 11 preliminary permits in effect for marine and
hydrokinetic projects. To date, the Commission has licensed six
marine and hydrokinetic projects, three of which were pilot
projects, and is reviewing one application for a pilot tidal
project.
ii. s. 1419
Section 102 of S. 1419 provides that the Secretary of
Energy, in consultation with the Secretary of the Interior, the
Secretary of Commerce, and the Commission, shall carry out a
program of research, development, demonstration, and commercial
application to expand marine and hydrokinetic renewable energy
production. While the Commission is not authorized or funded to
engage in research, development, or commercial application
activities, Commission staff is prepared to assist the
Secretary, as appropriate, in these matters.
Section 103 of S. 1419 provides for the development, under
the Secretary of Energy, of national marine renewable energy
research, development, and demonstration centers. Commission
staff has discussed such centers with staff at the Department
of Energy and believes that the centers could provide important
support for the development of marine and hydrokinetic
technology. Because the FPA requires that projects developed by
private entities, states, and municipalities that are located
in the navigable waters be licensed by the Commission,
Commission staff believes that a regime in which the test
centers would be owned by the Department of Energy would be
preferable, so that testing would not require Commission
authorization.
Section 201 of S. 1419 would amend the FPA to authorize the
Commission to issue pilot project licenses under specified
criteria. As noted, the Commission has already issued pilot
project licenses and Commission staff has developed guidance
with respect to such licenses, under the assumption that the
FPA currently provides authority for the Commission to do so.
No entity has to date suggested that these actions are beyond
the scope of the FPA. However, it is up to Congress to
determine whether the Commission should be provided with
explicit statutory authority in this area. To the extent that
section 201 establishes criteria for qualifying pilot projects,
Commission staff recommends that project developers and other
stakeholders be given the opportunity to present their views on
these matters. In addition, Commission staff recommends
providing some flexibility in the criteria, given the unlcnowns
in developing a new industry.
I would be pleased to answer any questions you may have.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill S. 1419, as ordered reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italic, existing law in
which no change is proposed is shown in roman):
ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
PUBLIC LAW 110 140
* * * * * * *
TITLE VI--ACCELERATED RESEARCH AND DEVELOPMENT
* * * * * * *
Subtitle C--Marine and Hydrokinetic Renewable Energy Technologies
SEC. 631. SHORT TITLE.
This subtitle may be cited as the ``Marine and Hydrokinetic
Renewable Energy Research and Development Act''.
* * * * * * *
SEC. 632. DEFINITION.
For purposes of this subtitle, the term ``marine and
hydrokinetic renewable energy'' means [electrical] energy
from--
(1) waves, tides and currents in oceans, estuaries,
and tidal areas;
(2) free flowing water in rivers, lakes, and streams;
(3) free flowing water in man-made channels; and
(4) differentials in ocean temperature (ocean thermal
energy conversion).
* * * * * * *
SEC. 633. MARINE AND HYDROKINETIC RENEWABLE ENERGY RESEARCH AND
DEVELOPMENT.
[(a)In General.--The Secretary, in consultation with the
Secretary of the Interior and the Secretary of Commerce, acting
through the Under Secretary of Commerce for Oceans and
Atmosphere, shall establish a program of research, development,
demonstration, and commercial application to expand marine and
hydrokinetic renewable energy production, including programs
to--
[(1) study and compare existing marine and
hydrokinetic renewable energy technologies;
[(2) research, develop, and demonstrate marine and
hydrokinetic renewable energy systems and technologies;
[(3) reduce the manufacturing and operation costs of
marine and hydrokinetic renewable energy technologies;
[(4) investigate efficient and reliable integration
with the utility grid and intermittency issues;
[(5) advance wave forecasting technologies;
[(6) conduct experimental and numerical modeling for
optimization of marine energy conversion devices and
arrays;
[(7) increase the reliability and survivability of
marine and hydrokinetic renewable energy technologies,
including development of corrosive-resistant materials;
[(8) identify, in conjunction with the Secretary of
Commerce, acting through the Under Secretary of
Commerce for Oceans and Atmosphere, and other Federal
agencies as appropriate, the potential environmental
impacts, including potential impacts on fisheries and
other marine resources, of marine and hydrokinetic
renewable energy technologies, measures to prevent
adverse impacts, and technologies and other means
available for monitoring and determining environmental
impacts;
[(9) identify, in conjunction with the Secretary of
the Department in which the United States Coast Guard
is operating, acting through the Commandant of the
United States Coast Guard, the potential navigational
impacts of marine and hydrokinetic renewable energy
technologies and measures to prevent adverse impacts on
navigation;
[(10) develop power measurement standards for marine
and hydrokinetic renewable energy;
[(11) develop identification standards for marine and
hydrokinetic renewable energy devices;
[(12) address standards development, demonstration,
and technology transfer for advanced systems
engineering and system integration methods to identify
critical interfaces;
[(13) identifying opportunities for cross
fertilization and development of economies of scale
between other renewable sources and marine and
hydrokinetic renewable energy sources; and
[(14) providing public information and opportunity
for public comment concerning all technologies.
[(b) Report.--Not later than 18 months after the date of
enactment of this Act, the Secretary, in conjunction with the
Secretary of Commerce, acting through the Undersecretary of
Commerce for Oceans and Atmosphere, and the Secretary of the
Interior, shall provide to the Congress a report that
addresses--
[(1) the potential environmental impacts, including
impacts to fisheries and marine resources, of marine
and hydrokinetic renewable energy technologies;
[(2) options to prevent adverse environmental
impacts;
[(3) the potential role of monitoring and adaptive
management in identifying and addressing any adverse
environmental impacts; and
[(4) the necessary components of such an adaptive
management program.]
The Secretary, in consultation with the Secretary of the
Interior, the Secretary of Commerce, and the Federal Energy
Regulatory Commission, shall carry out a program of research,
development, demonstration, and commercial application to
accelerate the introduction of marine and hydrokinetic
renewable energy production into the United States energy
supply, giving priority to fostering accelerated research,
development, and commercialization of technology, including
programs--
(1) to assist technology development to improve the
components, processes, and systems used for power generation
from marine and hydrokinetic renewable energy resources;
(2) to establish critical testing infrastructure
necessary--
(A) to cost effectively and efficiently test and
prove marine and hydrokinetic renewable energy devices;
and
(B) to accelerate the technological readiness and
commercialization of those devices;
(3) to support efforts to increase the efficiency of energy
conversion, lower the cost, increase the use, improve the
reliability, and demonstrate the applicability of marine and
hydrokinetic renewable energy technologies by participating in
demonstration projects;
(4) to investigate variability issues and the efficient and
reliable integration of marine and hydrokinetic renewable
energy with the utility grid;
(5) to identify and study critical short- and long-term
needs to create a sustainable marine and hydrokinetic renewable
energy supply chain based in the United States;
(6) to increase the reliability and survivability of marine
and hydrokinetic renewable energy technologies;
(7) to verify the performance, reliability,
maintainability, and cost of new marine and hydrokinetic
renewable energy device designs and system components in an
operating environment;
(8) to coordinate and avoid duplication of activities
across programs of the Department and other applicable Federal
agencies, including National Laboratories and to coordinate
public-private collaboration in all programs under this
section;
(9) to identify opportunities for joint research and
development programs and development of economies of scale
between--
(A) marine and hydrokinetic renewable energy
technologies; and
(B) other renewable energy and fossil energy
programs, offshore oil and gas production activities,
and activities of the Department of Defense; and
(10) to support in-water technology development with
international partners using existing cooperative procedures
(including memoranda of understanding)--
(A) to allow cooperative funding and other support of
value to be exchanged and leveraged; and
(B) to encourage the participation of international
research centers and companies within the United States
and the participation of United States research centers
and companies in international projects.
SEC. 634. NATIONAL MARINE RENEWABLE ENERGY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION CENTERS.
* * * * * * *
[(b) Purposes.--The Centers shall advance research,
development, demonstration, and commercial application of
marine renewable energy, and shall serve as an information
clearinghouse for the marine renewable energy industry,
collecting and disseminating information on best practices in
all areas related to developing and managing enhanced marine
renewable energy systems resources.]
(b) Purposes.--A Center (in coordination with the
Department and National Laboratories) shall--
(1) advance research, development, demonstration, and
commercial application of marine and hydrokinetic
renewable energy technologies;
(2) support in-water testing and demonstration of
marine and hydrokinetic renewable energy technologies,
including facilities capable of testing--
(A) marine and hydrokinetic renewable energy
systems of various technology readiness levels
and scales;
(B) a variety of technologies in multiple
test berths at a single location; and
(C) arrays of technology devices; and
(3) serve as information clearinghouses for the
marine and hydrokinetic renewable energy industry by
collecting and disseminating information on best
practices in all areas relating to developing and
managing marine and hydrokinetic renewable energy
resources and energy systems.
* * * * * * *
SEC. 636. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to
carry out this subtitle $50,000,000 for each of the fiscal
years [2008 through 2012] 2015 through 2018, except that no
funds shall be appropriated under this section for activities
that are receiving funds under section 931(a)(2)(E)(i) of the
Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(E)(i)).
* * * * * * *
FEDERAL POWER ACT
* * * * * * *
PART I
* * * * * * *
SEC. 34. PILOT LICENSE FOR MARINE AND HYDROKINETIC RENEWABLE ENERGY
PROJECTS.
(a) Definition of Hydrokinetic Pilot Project.--
(1) In general.--In this section, the term
``hydrokinetic pilot project'' means a facility that
generates energy from--
(A) waves, tides, or currents in an ocean,
estuary, or tidal area; or
(B) free-flowing water in a river, lake, or
stream.
(2) Exclusions.--The term ``hydrokinetic pilot
project'' does not include a project that uses a dam or
other impoundment for electric power purposes.
(b) Pilot Licenses Authorized.--The Commission may issue a
pilot license to construct, operate, and maintain a
hydrokinetic pilot project that meets the criteria listed in
subsection (c).
(c) License Criteria.--The Commission may issue a pilot
license for a hydrokinetic pilot project if the project--
(1) will have an installed capacity of not more than
10 megawatts;
(2) is for a term of not more than 10 years;
(3) will not cause a significant adverse
environmental impact or interfere with navigation;
(4) is removable and can shut down on reasonable
notice in the event of a significant adverse safety,
navigation, or environmental impact;
(5) can be removed, and the site can be restored, by
the end of the license term, unless the project has
obtained a new license or the Commission has
determined, based on substantial evidence, that the
project should not be removed because it would be
preferable for environmental or other reasons not to;
and
(6) is primarily for the purpose of--
(A) testing new hydrokinetic technologies,
both single devices and in arrays of devices;
(B) locating appropriate sites for new
hydrokinetic technologies; or
(C) determining the environmental and other
effects of a hydrokinetic technology.
(d) Lead Agency.--In carrying out this section, the
Commission shall act as the lead agency--
(1) to coordinate all applicable Federal
authorizations; and
(2) to comply with the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.).
(e) Schedule Goals.--
(1) In general.--Not later than 30 days after the
date on which the Commission receives a completed
application, and following consultation with Federal,
State, and local agencies with jurisdiction over the
hydrokinetic pilot project, the Commission shall
develop and issue pilot license approval process
scheduling goals that cover all Federal, State, and
local permits required by law.
(2) Compliance.--Applicable Federal, State, and local
agencies shall comply with the goals established under
paragraph (1) to the maximum extent practicable,
consistent with applicable law.
(3) 1-year goal.--It shall be the goal of the
Commission and the other applicable agencies to
complete the pilot license process by not later than 1
year after the date on which the Commission receives
the completed application.
(f) Size Limitation.--For proposed projects located in an
estuary, tidal area, river, lake, or stream, the Commission
shall determine the size limit on a case-by-case basis, taking
into account all relevant factors.
(g) Extensions Authorized.--On application by a project,
the Commission may make a 1-time extension of a pilot license
for a term not to exceed 5 years.
* * * * * * *